SeaDrill (SDRL) To Exchange Debt For Equity Again In A Month
Zacks Investment Research | Jun 10, 2016 08:17AM ET
With an intention to lower debt, SeaDrill Limited (NYSE:SDRL) , an offshore drilling firm, is again about to exchange debt-for-equity within a period of less than one month. Following the announcement, SeaDrill slipped almost 10% on the NYSE.
The drilling player will likely exchange senior notes with a total of $50 million in principal amount for 7,500,00 newly issued shares. The notes carrying 5-5/8% interest rates are set to mature by 2017. The settlement is scheduled for Jun 13, 2016. Thereafter, SeaDrill is anticipated to have a total of 508,444,280 shares both issued as well as outstanding.
As already mentioned, this is the second time within less than a month that the company has opted to swap bonds for equity. The last time, it had agreed to Zacks Investment Research
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